Beyond Return on Investment: Expanding the Value of Healthcare Information Technology (HIMSS Book Series)

Beyond Return on Investment: Expanding the Value of Healthcare Information Technology, 2nd Edition this updated and revised edition provides lessons learned from healthcare IT adoption and the opportunity to drive value realization. From providing a basic primer on 'how-to' complete a Return on Investment analysis for a single project to developing a comprehensive program of value management to support the transition to high value healthcare, this book addresses emerging trends, practical approaches and measurement methods to help drive value. Beyond Return on Investment, 2nd Edition views IT as a strategic asset in the transformation of healthcare. Based on previous editions, this book updates and identifies the components of an integrated value management strategy including value driven decision-making culture, an integrated approach to strategy development, a value based governance model, a process that defines business case development through ROI analysis, value measurement and value scorecard development. New chapters in this addition include a Framework for Value Management, validating vendor defined value and ROI, and new methods for realizing value Cover 1 Half Title 2 Title Page 4 Copyright Page 5 Contents 6 List of Figures 10 List of Tables 12 Foreword 14 Preface 18 Acknowledgments 20 About the Authors 22 1. Introduction: Setting the Stage for Value Creation 24 Purpose 24 Background 24 The Healthcare IT Value Pathway 30 Value Themes 32 Conclusion 34 Endnotes 34 2. The Journey to High-Value Healthcare: Understanding the Leadership Pivot 36 Purpose 36 The Journey to High-Value Healthcare 37 Stage 1.0: Brick-and-Mortar Healthcare 39 Stage 2.0: Transition 40 Stage 3.0: Digital Health and Connected Care 42 The Leadership Pivot 44 Conclusion 45 Endnotes 48 3. Yesterday, Today, and Tomorrow: Transformation and Innovation 50 Purpose 50 Transformation: Yesterday v. Today 51 Preparing for Tomorrow: Rationalizing Demand 54 Tomorrow: New Levels of Transformation 57 Conclusion 59 Endnotes 59 4. The Value Management Framework: A Foundation for Systems Thinking 62 Purpose 62 Different Thinking 63 Rapid ROI and Value Assessment 65 Assess Value and ROI Needs 66 Review Enterprise Strategy and Direction 67 Predict Value Outcomes and Identify Value Levers 68 Refine High-Level Measures 68 Design, Develop Transformation Road Map, Execute, and Improve 69 The Hard Work of Transformation: Developing the Road Map 69 Conclusion 71 Endnotes 71 5. Transformation Governance: An Integrated Approach to Decision-Making 74 Purpose 74 Transformation Governance: A New Model 75 The Transformation Management Office (TMO) 80 Conclusion 82 Endnotes 83 6. Making the Case for Investment: Setting the Stage with an Investment-Management Process 84 Purpose 84 From Budget Management to Investment Management 85 Bottom-Up or Project-Level Planning 88 Top-Down or Portfolio Planning 91 Investment Prioritization 92 Scoring Models 93 Arraying Approaches 94 Conclusion 95 7. Managing Healthcare Information Technology as an Investment: The Value-Management Plan 96 Purpose 96 Planning Value into Reality 97 Starting Well: The Program/Project Brief 98 Desired Value Outcomes 100 Key Value Levers and Capabilities Required 103 Definition of Degree of Change 107 Deployment Plans 108 Communications and Expectation Management Plan 109 Conclusion 110 Endnotes 111 8. Return on Investment Analysis: Building a Financial Model 112 Purpose 112 Understanding Return on Investment Analysis 112 Step 1: Identify and Quantify Costs 113 Step 2: Identify and Quantify Benefits 116 Step 3: Calculate ROI in a Consistent Manner 119 Cash Flow Analysis: The Foundation 124 Payback Period or Breakeven Analysis 125 Benefit-Cost Ratio 126 Net Present Value 126 Internal Rate of Return 127 Conclusion 130 Endnotes 132 9. Making Value Actionable: The Role of the Transformation Scorecard Process 134 Purpose 134 Adapting the Balanced Scorecard 135 The Transformation Scorecard Process 136 Critical Success Factors for Use of the Transformation Scorecard 142 Conclusion 145 Endnotes 145 10. Transformation and Population Health: Changing the Way Healthcare Changes 146 Purpose 146 Transformational Change and Population Health 147 Conclusion 152 Endnotes 153 Index 154 Content: List of Figures. List of Tables. About the Authors. Foreword. Acknowledgements. Chapter 1 Introduction Setting the Stage for Value Creation. Chapter 2 The Journey to High-Value Healthcare Understanding the Leadership Pivot. Chapter 3 Yesterday, Today, and Tomorrow Transformation and Innovation. Chapter 4 The Value Management Framework A Foundation for Systems Thinking. Chapter 5 Transformation Governance An Integrated Approach to Decision Making. Chapter 6 Making the Case for Investment Setting the Stage with an Investment Management Process. Chapter 7 Managing Healthcare Information Technology as an Investment The Value Management Plan. Chapter 8 Return on Investment Analysis Building a Financial Model. Chapter 9 Making Value Actionable The Role of the Transformation Scorecard Process. Chapter 10 Transformation and Population Health Changing the Way Healthcare Changes.